FLORIDA – KB Home to settle on statewide construction defects

KB Home to pay millions for its handling of construction problems in Florida

Article Courtesy of The Orlando Sentinel

By Mary Shanklin

Published February 17, 2016

KB Home reached a settlement with the Florida Attorney General’s Office involving construction defects, failure to disclosure problems to buyers and denial of home-warranty claims for 1,688 houses across the state.

At the core of the state’s three-year investigation were construction defects that led to water intrusion, which leads to mold, wood rot and even structural failure, according to the state. In some cases, the builder made the appropriate fixes but in others it ignored problems and failed to inform buyers — all in violation of the Florida Deceptive and Unfair Trade Practices Act.

As a result, one of Central Florida’s leading builders must repair houses that are up to 10 years old and qualify under the terms of the settlement. In addition, the Los Angeles-based builder must provide the Attorney General’s office with $6.5 million, which will help repay homeowners who had to pay for their own repairs. In addition, the company must invest $17 million improving its building methods, training its work crews and using improved building materials.

The builders’ acts and practices constituted “unconscionable acts or unfair or deceptive acts and trade practices,” according to the complaint filed by the attorney general in Tallahassee Circuit Court on Feb. 10. The settlement was announced the next day. Read more: